Ann: Strong initial flow rate from maiden STACK Play well, page-12

Don't forget BLACK MESA also have a back in of 18.75%-25% of BRK 's net interest after payout, and the BRK working interest is also subject to a 18.75 % mineral royalty .

So a 1 % working interest becomes a 0.81% WI from which Merchant get their 25%of the BRK net interest for providing the funds and BM get their cut for sourcing the deal.

The 1% gross interest pretty well drops to 0.4%- 0.5%. net interest

BRK will own 15 % of Black Mesa so they will capture some value but the way the whole thing is structured, according to appendix 1 of the announcement, at current oil and gas prices there is a 20 month payback period for the well so there will be quite a wait for any cash to hit the BRK coffers.

The plan here is to drill as much as possible over the next year or so, each successful well holds the acreage by production, prove up their 10 million+ barrel reserve and sell ( IMO )

cheers

Dan